The Central Bureau of Investigation (CBI) said on Sunday it had filed a fraud case against executives of Simbhaoli Sugar for causing alleged losses of Rs 1.09 billion to state-run Oriental Bank of Commerce.
Shares of Oriental Bank of Commerce and Simbhaoli Sugars lost 9-20 percent intraday on Monday as investors turned cautious post developments of a likely fraud involving the sugar firm.
The Central Bureau of Investigation (CBI) said on Sunday it had filed a fraud case against executives of Simbhaoli Sugar for causing alleged losses of Rs 1.09 billion to state-run Oriental Bank of Commerce, reports Reuters. The bank alleged that the sugar refiner “dishonestly and fraudulently diverted” a Rs 1.48-billion-loan sanctioned in 2011 for financing cane farmers for private use, a statement issued by CBI said.
This is the second case in three days registered by the CBI upon complaints from the Oriental Bank of Commerce. The police has registered a case against several top officials of Simbhaoli Sugar, including its chairman and managing director, chief executive and chief financial officer, some unknown bank officials, and other private persons.
Additionally, last week, the CBI also booked Dwarka Das Seth International Pvt Ltd for the alleged fraud of Rs 389.85 crore towards the state-run bank.
At 09:30 hrs Simbhaoli Sugars was quoting at Rs 14.10, down Rs 2.75, or 16.32 percent. It has touched a 52-week low of Rs 13.50. Meanwhile, Oriental Bank of Commerce was quoting at Rs 96.50, down Rs 9.25, or 8.75 percent. It has touched a 52-week low of Rs 96.20.
